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                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
     OF 1934

     For the Quarterly Period Ended September 30, 2000

                                       OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the transition period __________ to __________

                         Commission File Number 1-12902


                       FRONTIER ADJUSTERS OF AMERICA, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


            Arizona                                              86-0477573
-------------------------------                              -------------------
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)


                     45 East Monterey Way, Phoenix, AZ 85012
                    ----------------------------------------
                    (Address of principal executive offices)


                                 (602) 264-1061
              ----------------------------------------------------
              (Registrant's telephone number, including area code)


Former name, former address and former fiscal year, if changed since last report


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                                 Yes [X] No [ ]

Number of shares of Common Stock outstanding on November 3, 2000       8,957,660
                                                                       ---------

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<PAGE>
PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

                       FRONTIER ADJUSTERS OF AMERICA, INC.
                                AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEET


                                                    September 30,    June 30,
                                                        2000           2000
                                                     -----------    -----------
                                                     (unaudited)        (*)
                                     ASSETS

CURRENT ASSETS
  Cash and cash equivalents                          $ 3,098,849    $ 2,132,297
  Receivables                                          1,177,904      1,344,935
  Prepaid expenses                                       196,922        211,108
  Other                                                  304,023        264,737
                                                     -----------    -----------
       TOTAL CURRENT ASSETS                            4,777,698      3,953,077
                                                     -----------    -----------
PROPERTY AND EQUIPMENT                                 2,657,712      2,656,715
  Less accumulated depreciation and amortization      (1,067,309)    (1,034,326)
                                                     -----------    -----------
                                                       1,590,403      1,622,389
                                                     -----------    -----------
OTHER ASSETS
  Receivables (Long term)                                200,000        200,000
  Investments (Long term)                                622,591        628,661
  Other                                                  308,108        315,966
                                                     -----------    -----------
                                                     $ 1,130,699      1,144,627
                                                     -----------    -----------
       TOTAL ASSETS                                  $ 7,498,800    $ 6,720,093
                                                     ===========    ===========

                                   LIABILITIES

CURRENT LIABILITIES
  Accounts payable                                   $    38,024    $    25,835
  Accrued expenses                                        82,102        138,275
  Franchisee/licensee remittance payable                 143,942        116,287
  Accrued income taxes                                   259,453         33,989
  Service fees due to UFAC                                90,000         15,000
  Other                                                  108,592         90,367
                                                     -----------    -----------
       TOTAL CURRENT LIABILITIES                         722,113        419,753
                                                     -----------    -----------
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
  Common stock                                            90,191         90,191
  Additional paid in capital                           2,104,413      2,104,413
  Treasury stock                                        (184,068)      (184,068)
  Other                                                   26,055         26,704
  Retained earnings                                    4,740,096      4,263,100
                                                     -----------    -----------
                                                       6,776,687      6,300,340
                                                     -----------    -----------
  TOTAL LIABILITIES & STOCKHOLDERS' EQUITY           $ 7,498,800    $ 6,720,093
                                                     ===========    ===========

* Condensed from audited financial statements.

   The accompanying notes are an integral part of these condensed statements.

                                        2
<PAGE>
                       FRONTIER ADJUSTERS OF AMERICA, INC.
                                AND SUBSIDIARIES

                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (unaudited)

                 THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999


                                                          2000           1999
                                                       ----------     ----------
REVENUE
  Continuing licensee and franchisee fees              $1,390,157     $1,312,607
  Adjusting and risk management fees                      204,508        363,457
                                                       ----------     ----------
                                                        1,594,665      1,676,064
                                                       ----------     ----------
COST AND EXPENSES
  Compensation and fringe benefits                        377,892        586,377
  Office                                                   72,598         90,500
  Advertising and promotion                                25,423         41,434
  Depreciation and amortization                            47,125         57,522
  Provision for doubtful accounts                          23,705         52,840
  UFAC Service fees                                        95,275         75,000
  Other                                                   276,239        219,485
                                                       ----------     ----------
  INCOME FROM OPERATIONS                                  918,257      1,123,158
                                                       ----------     ----------
                                                          676,408        552,906
                                                       ----------     ----------
OTHER INCOME (EXPENSE)
  Interest income                                          53,852         23,064
  Other (net)                                               9,785          7,959
                                                       ----------     ----------
                                                           63,637         31,023
                                                       ----------     ----------
INCOME BEFORE INCOME TAXES                                740,045        583,929
                                                       ----------     ----------
INCOME TAXES                                              263,049        216,597
                                                       ----------     ----------
  NET INCOME                                           $  476,996     $  367,332
                                                       ==========     ==========
EARNINGS PER SHARE
  Basic                                                $      .05     $      .04
                                                       ==========     ==========
  Diluted                                              $      .05     $      .04
                                                       ==========     ==========
WEIGHTED AVERAGE SHARES OUTSTANDING
  Basic                                                 8,957,660      8,957,560
                                                       ==========     ==========
  Diluted                                               8,957,660      8,957,560
                                                       ==========     ==========

   The accompanying notes are an integral part of these condensed statements.

                                        3
<PAGE>
                       FRONTIER ADJUSTERS OF AMERICA, INC.
                                AND SUBSIDIARIES

            CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                   (Unaudited)

                 THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999


                                                          2000           1999
                                                        ---------      ---------
NET INCOME                                              $ 476,996      $ 367,332
                                                        ---------      ---------
OTHER COMPREHENSIVE INCOME (NET OF TAX)
  Foreign currency translation adjustments                   (649)           448
  Unrealized gain (loss) on securities                         --          8,094
                                                        ---------      ---------
                                                             (649)         8,542
                                                        ---------      ---------
COMPREHENSIVE INCOME                                    $ 476,347      $ 375,874
                                                        =========      =========

   The accompanying notes are an integral part of these condensed statements.

                                        4
<PAGE>
                       FRONTIER ADJUSTERS OF AMERICA, INC.
                                AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)

                 THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999


<TABLE>
<CAPTION>
                                                              2000            1999
                                                           -----------     -----------
<S>                                                        <C>             <C>
NET INCOME                                                 $   476,996     $   367,332
                                                           -----------     -----------
Adjustments to reconcile net income to net cash
  provided by operating activities:
   Depreciation and amortization                                47,125          57,522
   Loss on disposition of property & equipment                      --              --
   (Gain) on sale of license                                      (947)             --
   Provision for doubtful accounts                              23,705          52,840
Change in assets and liabilities:
(Increase) decrease in:
   Receivables                                                  87,274          83,032
   Prepaid expenses                                             14,186          65,390
   Other                                                       (45,677)         57,772
Increase (decrease) in:
   Accounts payable                                             12,189           3,100
   Service fees due to UFAC                                     75,000          25,000
   Accrued expenses                                            (56,173)       (101,481)
   Franchisee and licensee remittance payable                   27,655         153,186
   Other                                                       244,048          10,166
                                                           -----------     -----------
   Total adjustments                                           428,385         406,527
                                                           -----------     -----------
NET CASH PROVIDED BY OPERATING ACTIVITIES                      905,381         773,859
                                                           -----------     -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Capital expenditures                                           (997)        (92,238)
   Proceeds from held-to-maturity investments                    6,177              --
   Proceeds from sales of license                                5,182          25,000
   Payments on License acquisition                                  --         (13,660)
   Advances to licensees and franchisees                      (760,799)     (1,020,525)
   Collections of advances to licensees and franchisees        812,616       1,075,026
                                                           -----------     -----------
   NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES          62,179         (26,397)
                                                           -----------     -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Cash dividends                                                   --      (5,918,475)
                                                           -----------     -----------
   NET CASH (USED IN) FINANCING ACTIVITIES                          --      (5,918,475)
EFFECT OF EXCHANGE RATE CHANGES ON CASH                         (1,008)            712
                                                           -----------     -----------

NET INCREASE (DECREASE) IN CASH                                966,552      (5,170,301)
   Cash at beginning of the period                           2,132,297       6,892,851
                                                           -----------     -----------
   Cash at the end of the period                           $ 3,098,849     $ 1,722,550
                                                           ===========     ===========
Supplemental disclosures of Cash Flow information
Cash paid during the period

   Income taxes                                            $    81,524     $     5,777
   Interest                                                $        --     $       774
</TABLE>

   The accompanying notes are an integral part of these condensed statements.

                                        5
<PAGE>
                       FRONTIER ADJUSTERS OF AMERICA, INC.
                                AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

(1) BASIS OF PRESENTATION

The  financial   information  included  herein  is  unaudited;   however,   such
information  reflects all  adjustments  (consisting  solely of normal  recurring
adjustments)  which are,  in the  opinion of  management,  necessary  for a fair
statement of results of operations for the interim periods.

The results of  operations  for the three month period ended  September 30, 2000
are not necessarily indicative of the results to be expected for the full year.

(2) REVENUE RECOGNITION

In December 1999, the staff of the  Securities  and Exchange  Commission  issued
Staff Accounting Bulletin No. 101 Revenue  Recognition in Financial  Statements.
SAB No. 101 summarizes some of the staff's interpretations of the application of
generally accepted accounting principles to revenue recognition. The Company has
adopted SAB No. 101 this fiscal  year.  Management  believes the adoption of SAB
No. 101 has not had a significant affect on its financial statements.

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

The  statements  contained  in this  Report  on Form  10-Q  that are not  purely
historical are forward looking  statements  within the meaning of Section 27A of
the  Securities  Act of 1933,  as amended,  and  Section  21E of the  Securities
Exchange Act of 1934, as amended,  including  statements regarding the Company's
"expectations",    "anticipation",    "hopes",   "intentions",   "beliefs",   or
"strategies" regarding the future. Forward looking statements include statements
regarding revenue,  margins,  expenses, and earnings analysis with regard to the
Company  or with  regard to the  Company's  licensees  and  franchisees  for the
remainder  of fiscal  2001 and  thereafter;  improvement  of,  and growth in the
number of, licensees and  franchisees;  future spending on marketing and product
development  strategy;  statements  regarding  the  outcome of  litigation;  and
liquidity and anticipated availability of cash for operations,  acquisitions, or
payments of dividends.  All forward looking statements included in this document
are based on  information  available  to the Company on the date of this report,
and the  Company  assumes  no  obligation  to update  any such  forward  looking
statement.  It is  important to note that the  Company's  actual  results  could
differ  materially  from those in such  forward  looking  statements.  Among the
factors that could cause  actual  results to differ  materially  are the factors
discussed in this Report and any other  reports on file with the SEC,  including
but not  limited to the extent and  nature of natural  disasters  in  geographic
areas  serviced by the Company or by its licensees and  franchisees;  management
decisions by insurance  companies and  self-insureds to increase or decrease the
degree to which they contract for services offered by the Company, its licensees
or  franchisees;  the  Company's  ability to identify and attract new  qualified
licensees  and  franchisees;  the  success  of  the  Company's  promotional  and
marketing  programs;  the  Company's  ability  to  successfully  manage  offices
reacquired from existing licensees and franchisees;  and uninsured liability for
acts or omissions of the Company's employees, licensees, or franchisees.

In March of 2000,  the  Company  announced  plans  pursuant to which the Company
would exchange 11.2 million shares of its common stock for all of the issued and
outstanding  shares of  United  Financial  Adjusting  Company  ("UFAC")  and its
subsidiaries,  JW Software,  Inc.  ("JW") and DBG  Technologies,  Inc.  ("DBG").
Netrex Holdings,  LLC ("Netrex") currently owns all of the outstanding shares of
stock in UFAC which holds approximately 59% of the Company's  outstanding stock.
The Company  announced  on October 24, 2000 it had agreed with UFAC to terminate
the Merger Agreement  entered into between the Company,  UFAC and Netrex,  dated
May 2, 2000. UFAC maintains its ownership in the Company, currently representing
approximately 59% of the Company's outstanding shares.

UFAC is an insurance claim management  services company, JW develops and markets
claim management  software and DBG develops and markets  internet-based  systems
and websites.

FINANCIAL CONDITION

The Company has  historically  financed its growth and on-going  operations with
cash generated from  operations.  In the three months ended  September 30, 2000,
the Company's  operations generated $905,000 in cash. The most significant items
affecting cash generated by the Company's operations are net income of $477,000,
an increase in other liabilities of $244,000, a $75,000 increase in service fees
due to UFAC, an $87,000  decrease in  receivables,  a $46,000  increase in other
assets,  and a $56,000  decrease  in accrued  expenses.  The  increase  in other
liabilities mainly relates to the increase in accrued income taxes. The increase
in other assets is primarily due to the increase in deferred income taxes.

For  the  three  months  ended  September  30,  2000,  the  Company's  investing
activities  generated $62,000 in cash. The most significant items affecting cash
generated from  investing  activities are $761,000 given as advances or loans to
licensees and franchisees and $813,000 in collections on advances or loans given
to licensees and franchisees.

                                        6
<PAGE>
For the three months ended  September 30, 2000,  the Company did not generate or
use any cash in financing activities.

The Company  anticipates  that during fiscal 2001 its  operations  will generate
sufficient cash to fund its operations and equipment  acquisitions.  Through its
capital investment program,  the Company replaces obsolete or outdated equipment
and invests in new  equipment  and  furnishings  to  maintain  or  increase  the
productivity of the Company and its employees. The Company anticipates investing
between  $150,000  and  $250,000 in fiscal 2001 for  equipment  and  furnishings
pursuant to its capital investment program.

In June 1999,  a  complaint  was filed in the United  States  District  Court in
Nebraska against multiple defendants including the Company. The complaint arises
from the alleged  embezzlement  by a former  licensee in connection  with claims
services provided for the benefit of the plaintiff.  The complaint seeks damages
of at least $1,800,000 from the Company.  The Company has denied  allegations of
liability  contained in the  complaint.  As the lawsuit is still in its earliest
phase, the Company cannot yet assess the merits of the complaint or whether this
suit will have a material adverse effect on the Company. For further discussion,
see "Part II, Item 1 - Legal Proceedings".

The Company's ratio of current assets to current liabilities was 6.62 to 1 as of
September 30, 2000 and 9.42 to 1 as of June 30, 2000.

RESULTS OF OPERATIONS - QUARTER ENDED SEPTEMBER 30, 2000 COMPARED TO 1999

REVENUE

The  Company's  revenue  decreased  4.8% or $81,000 to $1,595,000 in the current
quarter  from  $1,676,000  in the same  period of the  prior  fiscal  year.  The
decrease  represents a $158,000  decrease in adjusting and risk  management fees
and a $77,000 increase in continuing licensee and franchisee fees.

The decrease of $158,000 in adjusting  and risk  management  fees to $205,000 in
the quarter ended  September 30, 2000 compared to $363,000 in the same period of
the prior  fiscal year  represents  a 43.5%  decrease.  The Company  experienced
decreases of $107,000 in adjusting fees in its Phoenix,  Arizona office, $32,000
in adjusting fees in its Tucson,  Arizona office,  and $18,000 in adjusting fees
in its Las  Vegas/Henderson,  Nevada  office.  The  remainder  of the  decrease,
$1,000, is due to the  discontinuation  of risk management  services provided by
the Company's home office.

The  decline  in the Las  Vegas/Henderson  office is  primarily  the result of a
decrease  in storms this  quarter as  compared to the same  quarter of the prior
fiscal year.  The decrease in the Phoenix  office partly relates to a client the
Phoenix  office  acquired  in  November  1997  and lost in  early  fiscal  2000.
Furthermore,  the Phoenix  office has  experienced a general  decrease in claims
this  quarter as  compared to the same  quarter of the prior  fiscal  year.  The
decrease in the Tucson office is the result of the Company's  sale of the Tucson
office to a new  franchisee  on January 1, 2000.  Finally,  the  Company  ceased
providing  risk  management  services  within the home  office  during the prior
fiscal year as it was not economical to continue  providing such services.  Fees
generated from the risk management  services were $1,000 in the first quarter of
the prior fiscal year. The decision to have  franchisees  and licensees  provide
risk  management  services for clients  continues to remain with the  individual
franchisees and licensees.

The Company's  revenue from  continuing  licensee and franchisee  fees increased
$77,000,  or 5.9%,  from $1,313,000 in the three months ended September 30, 1999
to $1,390,000 this quarter.  This increase reflects the benefit to the Company's
licensees and franchisees from an increase in claims  assignments from insurance
companies and self-insureds.

The Company's  revenue is affected by numerous matters  including the work loads
of other companies and claims presented by their clients. Therefore, the Company
is unable to project  its future  revenue.  The Company  has  historically  seen
growth in the licensee and franchisee fees paid, with exception to the loss of a
major client in 1997. To further enhance revenue growth,  the Company  continues
to develop and implement  sales and marketing  efforts to take  advantage of its
geographic diversity as well as the unique strengths of its individual licensees
and franchisees.  With the addition of the marketing  resources provided by UFAC
(See Service  Fees),  the Company hopes to see continued  growth in licensee and
franchisee fees paid.

                                        7
<PAGE>
COMPENSATION AND FRINGE BENEFITS

Compensation  and  employee  benefits  represent   approximately  41.1%  of  the
Company's  costs and expenses  and also  represents  the largest  single item of
expense.  These expenses decreased $208,000,  or 35.5%, to $378,000 in the three
months ended  September  30, 2000 from $586,000 in the same quarter of the prior
fiscal year. A portion of this decrease relates to the resignation of Francis J.
LaPallo,  a former  Executive Vice  President,  on January 31, 2000.  During the
first  quarter  of  the  prior  fiscal  year,   the  Company  was  still  paying
compensation and benefits associated with Mr. LaPallo's  employment.  Certain of
the  services  provided by Mr.  LaPallo are now  provided by UFAC  pursuant to a
service agreement  between the Company and UFAC.  Charges for these services are
reflected in a fixed monthly fee paid to UFAC under the service  agreement.  For
further discussion, see "Service Fees".

The decrease  further  reflects the fact that most of the adjusters  employed by
the Company-owned adjusting offices are compensated by commission based on their
adjusting services.  As the adjusting fees in these offices decrease,  the wages
paid to these  adjusters  also  decrease.  Furthermore,  during the prior fiscal
year, the Company replaced its profit sharing plan with a gainsharing plan and a
401K plan,  decreasing  expenses related to these plans by $60,000 for the three
months  ended  September  30, 2000 as compared to the same  quarter of the prior
fiscal year. Finally, the Company has reduced the amount of compensation paid to
employees  due  to  the  departure  and   non-replacement  of  certain  salaried
personnel.

SERVICE FEES

On April 30,  1999,  the  Company  entered  into a service  agreement  with UFAC
whereby the Company pays a $25,000 monthly fee for certain services  provided by
UFAC.  Services  included  under  this  agreement  are  management,   marketing,
technology,  human resource support,  and accounting and reporting support.  For
the three months ended September 30, 2000 and 1999, the Company incurred $75,000
in service fees under this agreement.

The Company also pays UFAC for service performed beyond the scope of the service
agreement.  For the three months ended September 30, 2000, the Company  incurred
an  additional  $15,000 in  computer  consulting  fees and  $5,000 in  telephone
support for the  Company's  after-hour  hotline,  for an aggregate of $20,000 in
services  provided  by UFAC  that  were not  within  the  scope  of the  service
agreement.

The  Company  believes  that the  charges for the  services  provided  under the
service agreement are competitive or lower than charges for similar services and
facilities available from third parties.

EXPENSES OTHER THAN COMPENSATION AND FRINGE BENEFITS AND UFAC SERVICE FEES

The Company's  expenses  other than  compensation  and fringe  benefits and UFAC
service fees decreased  $17,000,  or 3.7%, from the three months ended September
30, 1999 to the three  months ended  September  30, 2000.  The  principal  items
affecting  these  expenses are  decreases  of $29,000 in provision  for doubtful
accounts,  $18,000 in office  expenses and $16,000 in advertising and promotion,
and increases of $35,000 in legal fees and $18,000 in miscellaneous expenses.

The Company has  traditionally  advanced funds to  franchisees  and licensees to
assist them in the initial start-up and growth of their business. Throughout the
years,  the  Company  has  loaned  significant   amounts  of  money  to  various
franchisees  and  licensees.  The  Company  reserves  for such loans  based upon
historical  experience and current changes in circumstances.  Loans are reserved
for under the following circumstances:  (1) the Company determines that the loan
is  uncollectible  and (2) the  collectability  of the  entire  loan  balance is
questionable.  Based upon  historical  experience,  a loan is  determined  to be
uncollectible when notice is given by the Company or by a franchisee or licensee
that the relationship with the Company is being terminated.  Collectability of a
loan  becomes   questionable  when  either  the  Company  anticipates  that  the
relationship  between the Company and the franchisee or the licensee will become
terminated,  or the volume of the  franchisee or licensee is inadequate to repay
the loan in a reasonable period.

During  fiscal  2000,  the Company  carried  loans with certain  franchisees  or
licensees  that had sizable loan  balances  which  accumulated  over a number of
years. As the franchisees' or licensees'  volume had diminished,  or their loans
age, the Company has provided  for reserves on these loans as  appropriate.  The
likelihood of collecting  100% of such loans was determined to be  questionable,
based upon the  Company's  past  experience,  and therefore the Company found it
appropriate  to  reserve  for  these  loans.   The  Company  is  currently  more
conservative in lending funds to franchisees and licensees today; however, older
loans are affecting current reserves for bad debt. The incidents of older, large
balance  loans  turning  into bad debt  during  the  first  three  months  ended
September  30, 2000 has  decreased  as compared to the same quarter of the prior
year, therefore decreasing bad debt expense.

                                        8
<PAGE>
Office expenses decreased  primarily due to the Company's  purchases of supplies
being  greater in the first quarter of the prior fiscal year in  preparation  of
Year 2000. Furthermore,  the Company no longer incurs office expenses associated
with the Tucson,  Arizona  adjusting  office.  The decrease in  advertising  and
promotional  expenses  reflects the purchase of  promotional  items in the first
quarter of the prior year .  Furthermore,  a portion of this reduction is due to
the non-renewal of the Company's share of a luxury suite at a sporting  facility
during  fiscal  2000.  Legal  fees have  increased  as the  Company  has  needed
additional legal services in preparation of the once proposed and now terminated
Transaction with UFAC.

INCOME TAXES

The  Company's  income taxes were 35.5% and 37.1% of its income before taxes for
the three months ending September 30, 2000 and 1999, respectively.  A difference
in these rates is due to permanent  differences and is reflected in the increase
of the deferred tax asset of $42,000 from  $357,000 at June 30, 2000 to $399,000
at September 30, 2000.  The Company's  income taxes have not been  significantly
affected by any changes in the federal and state laws. However, tax rates can be
changed at any time based upon legislation.

OTHER INCOME

The Company's other income  increased  $33,000,  or 106.5%,  from $31,000 in the
three  months  ended  September  30, 1999 to $64,000 in the three  months  ended
September 30, 2000. This increase is essentially due to the $31,000  increase in
interest  income,  as the Company has earned more interest on its available cash
this quarter as compared to the same quarter of the prior fiscal year due to the
investment of a higher percentage of the Company's available cash.

NET INCOME

The Company' income for the quarter ended September 30, 2000 increased $110,000,
or 30.0%,  from $367,000 in the quarter ended  September 30, 1999 to $477,000 in
the current  quarter.  The most  significant  items  affecting net income were a
$81,000  decrease in revenue,  a $208,000  decrease in  compensation  and fringe
benefits and a $33,000 increase in other income.

RESULTS OF OPERATIONS - QUARTER ENDED SEPTEMBER 30, 1999 COMPARED TO 1998

REVENUE

The  Company's  revenue  increased  2.6% or $43,000 to $1,676,000 in the quarter
ended  September 30, 1999 from $1,633,000 in the same period of the prior fiscal
year.  The increase  represents a $40,000  increase in  continuing  licensee and
franchisee fees and a $3,000 increase in adjusting and risk management fees.

The increase of $3,000 in adjusting  and risk  management  fees from $360,000 in
the quarter ended  September 30, 1998 to $363,000 in the quarter ended September
30,  1999  represents  a 1%  increase.  The Company  experienced  an increase of
$28,000 in adjusting  fees in its Las Vegas office,  and decreases of $6,000 and
$19,000 in adjusting fees from the Phoenix and Tucson offices, respectively. The
increase  in the Las Vegas  office is  primarily  the result of an  increase  in
storms in the quarter ended September 30, 1999 as compared to the same period of
the prior year.

The Company's revenue from continuing  licensee and franchisee fees increased 3%
or $40,000 from $1,273,000 in the quarter ended September 30, 1998 to $1,313,000
in the quarter ended September 30, 1999.  This increase  reflects the benefit to
the Company's  licensees and franchisees from an increase in claims  assignments
from insurance companies and self insureds.

The Company's  revenue is affected by numerous matters  including the work loads
of  other  companies  and  claims  presented  by  their  clients.  The  Company,
therefore, is unable to project its future revenue. The Company has historically
seen growth in licensee and franchisee fees paid.  However,  during fiscal 1998,
the Company  experienced a decrease in revenue due primarily to the phase out of
a business relationship with its then major client. The Company has responded to
the loss of revenue by continuing  to develop and implement  sales and marketing
efforts to take  advantage  of its  geographic  diversity  as well as the unique
strengths of its individual licensees and franchisees. The Company's revenue did
recover in fiscal 1999, to an amount  comparable  to that of fiscal 1997,  which
was prior to the loss of the  client,  and the  Company  hopes to see  continued
growth in licencee and franchisee fees paid from other sources.

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<PAGE>
COMPENSATION AND FRINGE BENEFITS

Compensation and fringe benefits  represent  approximately  52% of the Company's
cost and expenses and are the Company's  largest  single item of expense.  These
expenses  decreased  18.4% or $132,000  from  $718,000 in the three months ended
September  30, 1998 to $586,000 in the quarter ended  September  30, 1999.  This
decrease is the result of the  retirements  of William J. Rocke,  former CEO and
former Chairman of the Board, and Jean E. Ryberg, former President,  on June 30,
1999.  Certain of the  services  provided by Mr.  Rocke and Mrs.  Ryberg are now
provided by United Financial  Adjusting  Company ("UFAC")  pursuant to a service
agreement between the Company and UFAC. Charges for these services are reflected
in a monthly fee paid to UFAC. See discussion below.

SERVICE FEES

On April 30,  1999,  the  Company  entered  into a service  agreement  with UFAC
whereby the Company pays a $25,000 monthly fee for certain services  provided by
UFAC.  Services  included  under  this  agreement  are  management,   marketing,
technology,  human resource support, and accounting and reporting. For the three
months ended September 30, 1999, the Company  incurred  $75,000 in service fees.
The Company did not incur any service fees related to this agreement in the same
quarter of the prior fiscal year.

EXPENSES OTHER THAN COMPENSATION AND FRINGE BENEFITS AND SERVICE FEES

The Company's  expenses  other than  compensation  decreased  $59,000 during the
three  months  ended  September  30, 1999 as compared to the same quarter of the
prior fiscal year. The principal items affecting these expenses are decreases in
the following expenses: Directors fees of $13,500; general insurance of $17,000;
legal fees of $12,000;  and computer consulting fees of $11,000.  The balance of
the Company's  costs and expenses have not  significantly  changed from the same
period of the prior fiscal year.

INCOME TAXES

The  Company's  income taxes were 37.1% and 39.5% of its income before taxes for
the three months ending September 30, 1999 and 1998, respectively.  A difference
in these rates is due to a decrease  in  permanent  differences  in book and tax
income  between  the  periods.   The  Company's   income  taxes  have  not  been
significantly  affected by any  changes in the federal and state laws.  However,
tax rates can be changed at any time based upon legislation.

OTHER INCOME

The Company's other income increased $3,000 or 10.7% from $28,000 in the quarter
ended September 30, 1998 to $31,000 in the quarter ended September 30, 1999. The
most  significant  items  affecting  other income  include a $6,000  decrease in
interest  income,  a $5,000  increase in other income,  and a $5,000 loss on the
sale of fixed assets for the quarter ended September 30, 1998.

NET INCOME

The  Company's net income for the quarter  ended  September  30, 1999  increased
$111,000  or 43.4% from  $256,000  in the quarter  ended  September  30, 1998 to

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<PAGE>
$367,000 in the current quarter. The most significant items affecting net income
were a $43,000  increase in revenue,  a $132,000  decrease in  compensation  and
fringe  benefits,  a $75,000 increase in service fees, and a $59,000 decrease in
expenses other than compensation and fringe benefits and service fees.

ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the risk of loss to future earnings,  fair values, or future cash
flows  due to  potential  changes  in the  price of a  financial  instrument.  A
financial  instrument's  value may  change as a result of  changes  in  interest
rates, exchange rates, commodity prices, equity prices and other market changes.
Market risk is inherent in all market risk sensitive financial instruments.

During the three  months  ended  September  30, 2000 the Company did not own any
marketable securities and is therefore not exposed to any market risk associated
with such investments.

The  Company has a book value of $619,000  invested in  municipal  bonds that it
carries as long term held-to-maturity investments. An increase in interest rates
would result in a decline in the market  value of the bonds.  These bonds mature
between  2005 and 2031.  As the Company has the intent and ability to hold these
bonds to maturity,  the market risk associated with these bonds is insignificant
and does not have a material effect on the financial statements.

Although  the Company  wholly owns a Canadian  subsidiary,  the cash held by the
Canadian subsidiary is not material to the Company's operations.  Therefore, any
foreign currency  fluctuations would not have a material effect on the Company's
financial statements.

PART II: OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS

In June  1999,  Safeway  Inc.  filed a  complaint  against  multiple  defendants
including  the Company in the United  States  District  Court in  Nebraska.  The
complaint  arises from the alleged  embezzlement  of over $1,800,000 by a former
franchisee of the Company.  The complaint  alleges claims against the Company in
connection  with claims  services  provided  for the  benefit of Safeway,  Inc.,
including breach of fiduciary duty,  negligent  failure to monitor or supervise,
vicarious  liability and breach of contract.  The complaint  seeks an accounting
and a recovery of compensatory  damages of at least $1,800,000.  The Company has
denied the allegations of liability  contained in the complaint.  As the lawsuit
is still in its earliest phase,  the Company cannot yet assess the merits of the
complaint  or  whether  this  suit will have a  material  adverse  effect on the
Company.  The Company has sought  coverage under various  insurance  policies it
holds and has received  denials of coverage  from the  carriers.  The Company is
continuing to attempt to obtain coverage and defense from these carriers.  As of
September 30, 2000,  the Company has not accrued any  liability  with respect to
this lawsuit.

From time to time in the normal course of its business,  the Company is named as
a defendant in lawsuits.  With exception to the complaint  described  above, the
Company does not believe that it is subject to any such  lawsuits or  litigation
or threatened lawsuits or litigation that will have a material adverse effect on
the Company or its business.

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<PAGE>
ITEM 2 - Not Applicable

ITEM 3 - Not Applicable

ITEM 4 - Not Applicable

ITEM 5 - Not Applicable

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

(b) The Company  filed an 8-K on September  13, 2000,  an 8-K/A on September 15,
2000 and an  additional  8-K/A on  September  20, 2000 to report a change in the
Company's independent accountants for the fiscal year ending June 30, 2001.

                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                        FRONTIER ADJUSTERS OF AMERICA, INC.


Date: November 13, 2000                 /s/ Troy M. Huth
     ------------------                 ----------------------------------------
                                        Troy M. Huth, President, Chief Executive
                                        Officer and Director

Date: November 13, 2000                 /s/ Jeffrey R. Harcourt
     ------------------                 ----------------------------------------
                                        Jeffrey R. Harcourt, Chief Financial
                                        Officer, Treasurer and Director

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